DEBT MANAGEMENT RATIOS
Below are selected data from the financial statements of Jewell Company for 2008 and 2009.
| |
2009 |
2008 |
|
Total liabilities
|
$1,205,000
|
$952,000
|
|
Common stock ($30 par)
|
250,000
|
225,000
|
|
Paid-in capital in excess of par-common stock
|
150,000
|
135,000
|
|
Retained earnings
|
155,000
|
145,000
|
Required:
Determine whether the debt-to-equity ratio is increasing or decreasing and whether the company should be concerned.